Business Update

Medsea Estates Group PLC
28 October 2005


For immediate release

28 October 2005

                            MEDSEA ESTATES GROUP PLC
                           ('Medsea or 'the Company')

                           MEDSEA EXPANDS INTO ITALY

Medsea, the AIM-traded Spanish-based estate agency group, is now offering
low-cost properties in Italy in a deal expected to make a contribution to
trading in the next twelve months. Through an agreement with Bella Calabria SI,
a local Italian company, it now has exclusive rights to an initial range of 110
low-price beach-front properties in Calabria, Southern Italy.

Medsea's Chairman Tony Gatehouse says : 'This major move into the Italian market
will give our existing agents another potentially lucrative string to their bow.
We hope this will also attract new agents who currently specialise in Italy who
could offer Medsea's Spanish properties to their cleints.

'Our partner in the deal, Bella Calabria, is a well-respected company, with long
experience in the Italian market. Calabria is an unspoiled and spectacular place
to buy a second/holiday home, with very attractive villages and lovely sandy
beaches'.

The new five phase developments - Vista Bella townhouses and San Raffaele
apartments - start at £30,000. Medsea also has exclusive rights to market an
additional cliff-top villa development alongside a top ranking golf course which
is being built a short distance inland.


                                  - ends -


For further information contact:

Medsea Estates Group PLC:
Tony Gatehouse, Chairman                         0034 96 570 40 02
and
Juan Carlos Rodriguez Martinez, Chief Executive

Beaumont Cornish Limited
Roland Cornish/Noelle Greenaway                  0207 628 3396

Midas Investment Management Limited:             0161 228 1709
Mark Sheppard

Weber Shandwick Square Mile:                     0207 067 0700
Terry Garrett/ Alex White



                      This information is provided by RNS
            The company news service from the London Stock Exchange